Perth, Aug 24, 2009 (ABN Newswire) - Victory West Moly Limited (ASX:VWM) is pleased to announce that it has accepted an offer for a A$2 million convertible note with Dempsey Resources Limited, a fully owned subsidiary of Cape Lambert Iron Ore Limited (ASX: CFE), subject to completion of formal legal agreements.
Under the terms of the offer, the convertible note holders have the right before the repayment date of 2 years from the date formal agreement are executed, to convert the note into ordinary shares in VWM, subject to the receipt of all necessary approvals, if required. Upon receipt of any conversion notice, VWM will have 90 days to determine whether to consent to the conversion or to purchase that portion of the note requested to be converted. The conversion price will be the higher of $0.30 per share or volume weighted average closing share price on ASX calculated using the five (5) trading days immediately prior to the issue of a conversion notice by the noteholder. The note carries a coupon rate of 12% interest per annum.
The Company is delighted to have the Tony Sage led Cape Lambert Group investing in the Company’s Malala Molybdenum Project in Indonesia.
Our respective Solicitors are currently meeting to conclude and finalise the documents by the end of August 2009.
The Company continues to further develop the project and hold discussions with interested parties to ensure the potential outcomes of this exciting project are reached.
About Victory West Metals Limited
Victory West Metals Limited (ASX:VWM) is a metals focused resource exploration company listed on the Australian Securities Exchange and Frankfurt Stock Exchange (FSE:R1E), with a vision to find, prove and extract value from world class metals projects in South East Asia.
The Company has, or is in the process of acquiring, majority interests in world class metals, deposits, including a 95% interest in the Malala Molybdenum Project is currently finalising 27.5% 'free carried' interest to production with experience Molybdenum mining group China Guangshou Group Co., Ltd.
Contact
Victory West Moly Limited Luke Martino Company Secretary TEL: +61-8-9381-5819 FAX: +61-8-9388-3701
Cape Lambert Resources Limited
